County slashes tax rate increase

11/18/2008

By Jim Poole

County slashes tax rate increase

Schoharie County taxpayers can take some relief in that the 2009 county budget won’t carry the tax increase that was first projected.
The Board of Supervisors’ Finance Committee last week slashed $570,000 from the proposed tax levy, reducing an estimated 3.2-percent tax increase to zero.
“We were able to reduce the tax rate to $7.85 per $1,000, exactly what it was in ’08,” said Blenheim Supervisor Bob Mann, finance chairman.
The full Board of Supervisors is expected to act on the budget this Friday.
Although the ’09 tax rate would remain the same, taxes are still expected to rise in most towns because of new state equalization rates.
The proposed tax rates in the tentative budget released last month by Treasurer Bill Cherry showed rates rising in three towns––Sharon, Carlisle and Seward––by about 24 percent. After the Finance Committee’s work, those rates are now expected to rise by about 20 percent.
In other towns, the rate would increase by 13 percent or less. In Richmondville, which recently re-evaluated property, the rate is dropping 8.6 percent, according to Mr. Cherry’s revised figures.
Mr. Mann said the Finance Committee worked all last week to cut the budget, with much of the ’09 costs reduced by tumbling fuel prices.
Noting that gas prices dropped quickly and could rise just as quickly Board Chariman Earl Van Wormer said the county will have enough money to compensate if the cost of gas jumps next year.
The committee also cut tipping fees paid to trash haulers from $34 per ton to $24, Mr. Mann said.
Also, added Mr. Van Wormer, who worked with the committee, department heads were willing to trim back purchases of equipment and supplies.
“They came up with proposed cuts and changes and deserve a lot of credit,” Mr. Van Wormer said.
In his first budget, Mr. Cherry recommended $10,000 for tourism promotion after the Chamber of Commerce, the county’s designated tourism agency requested $140,500.
The Finance Committee raised Mr. Cherry’s $10,000 figure to $30,000, “which we believe would pay the bare-bones administrative costs,” Mr. Mann said.
The Chamber needs $75,000 to receive a matching amount from the state for promotion, so tourism-related businesses would have to contribute, he said.
“They are the direct beneficiaries of promotion,” Mr. Mann said.
Mr. Van Wormer had hoped the committee would raise the county’s tourism budget higher than $30,000.
“I’m disappointed in that,” he said. “If you don’t do enough promotion, it hurts other businesses, too.
“But people are still passionate about this, so the issue’s not dead yet.”
The committee also added a position to the county’s Emergency Medical Services, which is considered a non-mandated, non-essential program and therefore may have been cut.
The current two-person department responded to “800-plus calls last year,” Mr. Van Wormer said, “and they saved lives.
“It may be a non-essential service, buy how do you tell people you’re not going to have a service that saves lives?”
To help pay for the new person, the county will bill insurance companies for the EMS calls, Mr. Mann said.
In another change, the committee reduced the estimated ’09 sales-tax revenue by $300,000 because of the economic slump.
Reviewing the committee’s work, Mr. Cherry was pleased.
“I think the committee did a great job combing the budget line by line,” he said. “It looks like we’re on the right track.
“Of course, we can’t do anything about the state-imposed equalization rates” that are raising tax rates despite the cuts.
Mr. Mann agreed, but warned that cuts could be much deeper in 2010 if the recession continues.
“I’m kind of scared about the next year,” he said. “We held the line this year, without the draconian cuts we may see after that.”